Rich Countries Urged to Increase Climate Funding to $250 Billion by 2035 at Azerbaijan Summit

Climate Summit Proposes $250 Billion Climate Support Fund

Countries at the climate summit in Azerbaijan are negotiating a new funding proposal for climate support. The chair of the summit has suggested that wealthy nations provide $250 billion annually starting in 2035 to support poorer countries. This funding would include both public and private money.

Earlier drafts of the proposal had no specific amount stated. Although $250 billion is now a concrete figure, it is significantly lower than what developing countries demand. Scientists and advocates have called for at least $1 trillion, urging rich countries to increase their support to $500 billion by 2030.

The current summit focuses on climate financing, earning it the nickname “money summit.” In the Paris Agreement of 2015, countries pledged to set a new funding target by now. The previous goal of $100 billion a year was only achieved in 2022.

Pieter Pauw, a climate finance expert, criticized the $250 billion target, saying it is inadequate for developing nations. He noted that after adjusting for inflation, the previous goal of $100 billion is now equivalent to $150 billion. The proposal means an increase of only $100 billion over eleven years, while climate damage costs already amount to hundreds of billions annually.

Pauw also pointed out that the proposal does not clarify new funding sources or responsibilities of contributing countries. There is no mention of taxing billionaires on air travel or eliminating fossil fuel subsidies.

The suggested funding prompted strong backlash from environmental organizations. Oxfam criticized the leadership at the summit, calling it a “shameful failure.” Many NGOs demanded over $1 trillion, primarily from grants. Greenpeace labeled the proposed amount as “inadequate” and disconnected from climate change realities.

The draft proposal calls for all countries to raise a collective $1.3 trillion by 2035, with developed countries leading this effort. Along with financial support, the text addresses climate change strategies. It reiterates some commitments made at last year’s summit in Dubai, including a tripling of renewable energy generation by 2030.

However, the commitment to reduce fossil fuel use is not clearly emphasized in the new proposal. During negotiations, Arab nations resisted calls to reaffirm these goals. The EU, impoverished nations, and low-lying island states want to keep pressure on fossil fuel transitions.

The proposal includes ambitions to enhance climate change mitigation efforts. It aims to invest in developing and strengthening power grids and linking super-batteries to the grid. This strategy intends to facilitate increased use of solar and wind energy, helping countries move away from oil, gas, and coal.

Minister Hermans from Climate and Green Growth stated that the latest proposal is an improvement over previous drafts but still requires significant work. She acknowledged better references to previous climate agreements but emphasized more is needed, particularly regarding climate financing proposals.